Wednesday, March 27, 2013

Facebook ad trial risks new privacy fears - FT

Facebook is testing adverts in its members’ newsfeeds that are tied to their behaviour on other websites, bringing one of the web’s most effective forms of advertising into the heart of its social network.

Using retargeting, advertisers can place their messages in front of internet users based on what they have done on other websites. A user who researches a holiday or a car online, for instance, may find adverts for those things appearing on other, unconnected websites.

Putting retargeted ads inside the feed where users are engaging most directly with friends and family members could backfire, said Rebecca Lieb, an analyst at Altimeter Group. Adverts that appeared to follow users around the web risked being seen as “creepy”, an effect that might be accentuated when they appeared in such a personal place on the page, she added.

To soften the impact of advertising in the newsfeed, Facebook has previously used approaches that draw on social context. Using a format called “sponsored stories”, for instance, advertisers have been able to buy space in a user’s feed when one of their friends has visited the advertiser’s page or engaged with it in some other way.

Showing retargeted ads without this type of social context risks making the social network feel increasingly “spammy”, said Richard Greenfield, an analyst at BTIG Research.